Banking/NBFC
Karnataka HC Directs Bank To Recover Excess Payment From Employees Who Failed To Act On Honest Pensioner's Representations For Years
The Karnataka High Court has restrained the Canara Bank from recovering the excess amount paid to a senior citizen in the family pension account and has asked the bank to recover the same from its officers who are responsible for not acting on the pensioner's representations for years.The pensioner had, on several occasions starting from the year 2016, requested the bank to deduct the excess amount in instalments and unblock her account. A single judge bench of Justice M Nagaprasanna...
Recovery Of Excess Amount From Pensioners Cannot Be Done By Banks In One Stroke: Karnataka HC Comes To Aid Of 73 Yrs Old Widow
The Karnataka High Court has said that though recovery of excess amounts paid by banks to pensioners is permitted, that would not mean that the excess is to be recovered in one stroke. Such amount may be recovered in monthly installments, it said. A single judge bench of Justice M Nagaprasanna was hearing the case of a 73-years-old widow aggrieved by the action of Canara Bank which debited Rs. 6,40,000 from her family pension account without even any communication. The bench observed...
Supreme Court Directs Rupee Co-op Bank's Appeal Against Cancellation Of Its License To Be Decided By October 31
The Supreme Court recently ordered that the stay granted by the Bombay High Court against the Reserve Bank of India's order cancelling the license granted to Rupee Co-Op Bank will stand restricted till October 31, 2022.The Top Court also directed that the appellate authority under Section 22(5) of the Banking Regulation Act 1949 shall take up the appeal for final disposal on 17 October 2022 and complete the disposal of the appeal on or before 31 October 2022;The bench comprising of Justice D. Y....
Bank Cannot Backout From OTS Offer After It Is Accepted By Borrower: Madhya Pradesh High Court
The Madhya Pradesh High Court recently held that a Bank cannot backout from implementing the One Time Settlement (OTS) offer it had proposed, after it was accepted by the borrower.Calling such an action by the Bank as arbitrary and unreasonable, Justice Sanjay Dwivedi observed-In the case at hand, the petitioner being a guarantor had mortgaged his personal property and after much haggling happened between the parties, the offer made by the respondent-Bank was accepted by the petitioner and...
Sanction Of Resolution Plan U/S 31 IBC Does Not Discharge Liability Of Guarantor Towards Loan Agreement: Delhi High Court
The Delhi High Court has recently reiterated that where proceedings are initiated under the SARFAESI Act and the borrower is aggrieved by any of the actions of the bank for which it has remedy under the Act, no writ petition should be entertained.Justice Sanjeev Narula further observed that the extent of liability of a personal guarantor would have to be determined in light of the agreement between the borrower, i.e., the corporate debtor and the personal guarantor, for which the appropriate...
Kotak's Ex - GC Joins Chandhiok & Mahajan To Enhance Banking, Finance And Corporate Governance Practice
New Delhi, Delhi: Chandhiok & Mahajan has welcomed this year with the hiring of Bhargesh Ojha as a Senior Advisor in the Banking, Finance, and Corporate Governance practice.Ranked as Top 100 GC's by Legal500 in India, Bhargesh brings with him an unmatchable experience of three decades in the banking and finance sector. Before joining C&M, Bhargesh has been independently consulting financial and non-financial institutions on risk analysis, corporate laws, BFSI regulations, real...
Banning Or Regulating Cryptocurrency-Where Is India headed?
The cryptocurrency players eagerly waiting and hoping to see a positive decision from the Government of India that could allow investing and trading in cryptocurrencies with some restrictions, might have to wait a bit longer. 'The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021' scheduled to be tabled this winter session in the Parliament, could not see the light of the day. The bill was created with the mindset to create a facilitative framework for creation of...
Mere Pasting Of Circular For Interest Rate Reduction By Bank On Its Notice Board Does Not Mean It Is Communicated To Customers: Karnataka High Court
The Karnataka High Court on Thursday dismissed an appeal filed by Canara Bank (E-Syndicate Bank) challenging an order of the Single judge by which it was directed to grant benefit of reduction of interest rate on Home loan to a customer from the date of issuance of the circular for reduction, instead of when the customer applied for seeking reduction. A division bench of Chief Justice Ritu Raj Awasthi and Justice Suraj Govindaraj was informed by the bank that the circular dated June ...
Company Entitled To Acquire Properties Dehors Cancellation Of Its Registration As NBFC: Kerala High Court
The Kerala High Court recently ruled that even when an entity is stripped of its NBFC license, it continues to operate as a company and a legal person as long as its Certificate of Registration is not cancelled under the Companies Act.Justice Bechu Kurian Thomas thus ruled that such a company, despite cancellation of its registration as an NBFC, is entitled to buy, own and hold properties and continue its legal existence.Allowing the plea of one such company, whose registration as NBFC was...
External Commercial Borrowings: A Brief Analysis Of The New Framework
As part of development tactics, India has always encouraged all kinds of capital inflow. So, what is ECB? Extra Commercial Borrowings are in simple terms, a type of loan which is generally availed by an Indian entity from a non-resident for commercial purposes. Such loans include but are not limited to, commercial bank loans, bonds & securities, fixed rate bonds, floating rate notes etc. RBI regulates the norms governing such loans/debts/borrowings under FEMA Regulations. However, a...
'Abuse Of Process' : Karnataka High Court Dismisses Petition Seeking Criminal Action Against Azim Premji Under RBI Act
The Karnataka High Court has dismissed a petition filed by a not for profit company named "India Awake for Transparency", challenging an order of the magistrate court dismissing its private complaint seeking directions to Reserve Bank of India to register a case against Wipro founder Azim Premji and others under the Reserve Bank of India Act. A single bench of Justice Suraj Govindaraj while dismissing the petition said: "I am of the considered opinion that the writ petition filed is an...